liz: the bears are feeling good. especially after congress gave amy perl course meal. budget talks on a path to nowhere right now. leading to a selloff on wall street. good afternoon, i am liz claman on this friday. thank you for joining me. the logjam in washington dc. the perception is one step closer to tottering over the fiscal cliff after john boehner failed to rally his troops. canceling the vote on plan b last night, and harry reid

making a speech. let's take a look at where we stand with the dow jones industrial down 138 points. we have been down more than 189 points earlier. don't even imagine last night when neil cavuto is like looking at futures, which was plummeting. if it is not as bad as it could've been. but the market is terrible. as we look at what we call the hot button here. we have bank of america and caterpillar. all of that pales in comparison with research in motion. the stock getting taken out to the woodshed. the services business is about 30% of revenue. to be pretty clear about this,

research in motion change the pricing model for 2013, and the impression is it the thumbs down. totally different story for investors. the software maker jumping about 4.5% here. better than expected third-quarter numbers. prescription revenues are up year-over-year. we are going to talk about the drivers. something called private cloud with red hat ceo, james whitehurst. what uncertainty is cooking up. we will ask them as a business leader, his perception of ceos who blame the uncertainty for what is happening to their companies and their stocks. okay, when we look at the calendar, almost single digits -- 10 days before we head over the fiscal cliff. it really doesn't look like we're any closer to a deal. now, there is no plan.

it is republicans fighting while democrats watch. reporter: that's right. speaker boehner in the face of opposition from dozens of conservative republicans who oppose any tax increases of any kind. this morning, the speaker said that he is still going to try to work on a deal. but he put the ball in the president and senate democrats court. so the speaker got going as well. he left the capitol, we head back to ohio for the christmas holiday here. no confirmation from his office on exactly where he is headed. now there are whispers that the speakership of john boehner maybe you jeopardy itself. if he loses, he will not be reelected speaker.

he lost more than 17 of the conservative republicans last night. so we are watching it. this morning he still expects her main speaker. >> while he may have not been able to get the vote last night, to avert 99.81% of the tax increases, they were taking that on me. they were under the perception that the money might accuse him of raising taxes. very christmas, everyone. reporter: some people have been calling it "merry cliff-mas." liz: we have been trying to figure out who called it out first. some people getting created. i really wish we would get action. thank you so much, peter. if anything happens, come back and update us.

we have breaking news on motorola. if you throw the letter x in front of everyone, everyone gets glittery eyed. a new phone called the x phone. no real details on this. google owns a lot of patents. google stock down 1%, but motorola working on a new iphone and samsung galaxy s-3 it is internally known as though x phone. tortorella has run into some obstacles, but there you are. we have run into gyrations today. stock options, equity options, let's take it to the traders that have been dealing with is that the new york stock exchange cme group.

john cortina, what was it like last night? how closely we want to mess with the stock futures dropping precipitously. it's not as bad as it could've been, is that right? >> yes, it's amazing what twitter can provide for you for information. i was at my child's recital and might twitter feed was going on. clearly, we saw a lot about last what happens overnight is that there's not a lot of volume or liquidity. you're going to see that shipped. the volatility in the market. especially that we saw with the s&p. if things like this find a way, i think that's healthy for the market. it's to showing it that yes, we were able to react to it. we put it all together. it seems like the market down its place. big panic isn't there yet. i think what happened on washington is when the republicans said, listen, here's where we're at right now. they were expecting a the sap in the market. now they can say, we told you it

was going to happen. look at how the market reacted. clearly, i think we have a match going back and forth. the effectiveness on the market is what we are seeing. liz: can i bring up the point, and there you can jump in this being at the cme -- when the first t.a.r.p. fell in 2008 when the dow jones fell 777 points. this is nothing like that, is that correct? >> exactly. what we are looking at is the u.s. dollar. where is that coming from? we are seeing a lot of movement now. i anticipate a lot more movement in the next week and a half. before the fiscal fiscal cliff does happen. i wasn't going to happen. the market is going to be watched closely. we will see the main people pulling back. but what we are also seeing his precious metals. all kinds of issues down in south africa, the mining of the

gold, more demand for gold and silver now. i'm of the major things like russia and others are buying back into the goals. we will see these come back out. the other currencies. particularly the town of the euro coming back down. the industry will continue to pull down. we are waiting and waiting. nobody can make a decision. liz: while everyone is sitting there, people making money. you make a great point about how cool came back today by $11. it may just be the worst quarter since 2008. allen, hairy, we do have some movement going back right now. what happens next week when trading is really sort of marginal at this point? >> well, what we saw last night was crude oil from the lack of fiscal talks that was going to produce talking about is going over the cliff.

then we came off a little bit more today. we didn't break the 90 level successfully, therefore it for sale. i think we're going down. we are getting down to the 86 level and then 89.5 from here. i think we are still heading down. liz: heading down. good to see you, gentlemen. have a lovely friday and good weekend. john cortina mentioned his twitter feed. what is your twitter handle? >> john cortina. liz: okay, great. it will be a green christmas for james whitehurst and his company, red hat, after he reported third-quarter revenues that beat wall street sentiment. they are moving higher by about

4.33%. it is the second biggest gainer of s&p 500 today. what a great early christmas present for james whitehurst who is joining me now from durham, north carolina. your subscription revenues, just 19% year over year -- where's the demand coming from? that is really pretty impressive. >> hello, yes. we felt very good about the quarter. the currency basis is 22%. we saw strength across the board. our strongest sector, we cannot, was financial services. we had some very large financial services deals with some of the large global banks. these industries are looking to save money, solutions as a way for departments to save money. the downmarket can be pretty depressed. liz: so you're saying that the financial institutions are actually finding real religion, being forced to cut costs, would you offer them, for example,

that the other guys do not? the microsoft and ibm companies of the world? >> we offer open source software. we offer software to run critical applications that you would never run on something like windows. everyone is used to the blue screen of death. we run the new york stock exchange, most bank trading platforms. %-the chips that would be in the pc or a standard commoditize server. lower-cost hardware, able to bring in some critical applications. rather than running a mainframe, which is obviously very expensive and relatively poor performance, we can offer very high performance until the economics of low-cost commodity hardware. liz: a comfortable margin on the revenue, you matched on the eps. these numbers for subscription revenues looking very healthy.

an acquisition for more than $100 million. things are looking good. let me ask you a leadership or ceo question. when you hear ceos come on this business network were some of the others and say there is so much uncertainty, we are not hiring, we are not spending. no capital expenditure. we are paralyzed at the moment because of washington dc. and you guys seem to be just cooking along. what you say on your breatt about those leaders? is that a blaming technique for their inability to run a business? we won't always have sunshine and rainbows two yes, it would be difficult for me to fit here. obviously, we are in a situation of business. before i was chief officer of delta airlines. they went through a bankruptcy restructuring. certainly, the fiscal cliff is having an impact. of course, as ceos, we are paid

to run businesses regardless of the circumstances. making sure that we continue to perform. everyone needs to dig deeper. ceos, rightly so, as leaders in the business community need to stand up and say, we have to fix this madness in washington. liz: we are waiting and watching. the private cloud. you better going big with that. can you explain to people -- amazon has the public cloud. who is paying you to make this happen for them? >> well, the typical large customer may have thousands of servers themselves. sobers is going to amazon to buy servers, they can have their own data center. the difference between a normal data center in a cloud as he treated as a big mass of computing apacity. so if your marketing department wants to run a program, it doesn't have to do it on an individual server. it's just a pool of resources.

that is what cloud computing needs. pooling resources. one of the largest public cloud in the world would be a company like dreamworks. when they have those 3-d animated motion pictures. millions of processor hours to render that. one of the largest crowds in the world. and that fully runs on a red-hot basis. that would be a great example. we see that around the world. companies are not ready to trust data to a public cloud like amazon. they do see the power of the economics of running these private cloud. the one we have actually watched dreamworks in pasadena render those movies. i have been there. it is fascinating, but yes, it takes a lot of space to really save it all. it's fascinating to see that you are that it does best for them. james whitehurst, red-hot ceo. great numbers. see you next time and happy holidays. >> thank you, happy holidays.

liz: we are 46 minutes before the closing bell rings. what a year for the markets. the best 2009. we have to go through a lot of angina to deal with it. we're talking one strategists coming up next who says that stocks could rise another 10 or 15%. that is straight ahead. stay tuned what's next?

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liz: retail sales coming out with the latest look. nicole petallides has more. >> that's right. they come up with some very key findings. as you can see, the gap has limited inventory liability to a milder winter. products with a state-run right.

it was a disappointment with too many basics. where are all the fresh fashions? that's what they said about eric postel the region's traffic checks. that has turned positive. you are trying to find out last-minute get it you have to get. this is what shoppers do during the holidays. back to you. liz: i have to tell you that i went into michael kors yesterday. you could not move. that has been quite the performing stock. i think it is at a 52 week high for this relatively new company that recently went public. why not coming down 3%. that tells you anything, you know, this would be a beautiful performance. it looks like no one can do well today.

>> michael kors is a hot name. accessories and everything. don't look at the stock price today because everything is so enough today. liz: thank you, nicole. thank you very much. it has been an incredible year on account of the closing bell. we are so glad that you have been a part of it. breaking news, ceos resigning, yes, covering the action in our 1000th show. result back in the last year. >> the countdown begins right now two welcome to 2012. here in omaha, nebraska. at the berkshire hathaway meeting. we are live in san francisco. we are watching greece again. mistakes are being raised and time is running out. >> the greek parliament at an emotional session. detaals going on outside.

>> facebook has made its debut at. >> the market is having a turtle bay. and facebook is doing relatively well. liz: blockbuster upholding the insurance mandate that health care bill. >> is about access to care. >> the big rally in the markets across the board. a major blowout at the top of citigroup. >> we talked to charlie gasper enough today. the auto bailout proves to be interesting. you believe it was the one that won ohio for the president? >> yes, i believe it was great for the president. i think it hurts the governor. liz: today, the thousandth episode of countdown to the closing bell. >> i'm here to say congratulations. >> watching the show. at the end of the day, sometimes

you get a little tired. some people take that five hour energy drink. and i just want you. you just have so much energy. >> here at the london olympics. >> let's talk about your job. >> okay. liz: you are the longest continuing sponsor the olympicc. from business to politics to rock 'n roll. come meet the ceo of the rock 'n roll hall of fame. terry stewart on crutches. thank you so much for joining us. >> let's turn to paul of intel. he's talking about this initiative. >> if nothing happens to this, we can have all kinds of fun on this. is a great day. liz: fox business. go start running. oh, he's stretching.

[laughter] liz: that's hilarious. >> go ahead. come on. >> that is really good. liz: charlie gasparino, a human filet mignon. eat as many hot dogs as possible. on your mark, get set and go. i'm requiring that you have to eat the bugs as well. liz: yes, the evolution of my hair. i know about that. we are so grateful that you have been with us every step of the way. thirty-seven minutes before the closing bell. 133 points. we will be back and stay tuned.

>> so much for future talks at the fort today. john boehner has left washington d.c. to go back to ohio. doesn't look like there will be any face-to-face meetings with the president at this point but he went back to his district, a flight? does anyone know? >> columbus, ohio. [talking over each other] liz: flights go to cleveland. that is the news on that. we are down 130 points and we will see if there's any real reaction but at the moment let's get back to the huge story charlie gasparino broke on the business network, duncan neiderauer, head of the stock exchange, the figure out the needed to find another buyer for the new york stock exchange at the same moment last year after the deutsche boerse deal. charlie: what i'm hearing from people in the inner circle is after the deal fell through,

european regulators said it violates antitrust. i don't understand how but that is what they said so they knicks the deal. duncan neiderauer went back to the drawing board to find out a merger. here's the interesting thing. why did he pick -- in the end he figured this would be the best deal and he was willing to give up the ceo role. an analyst comes in the middle of this, talking to -- after deutsche boerse blew up, did his job, said would you be willing to talk with duncan neiderauer? would you do deal for the stock exchange? he said yes but duncan won't give up the ceo job. ridge went back to duncan nd duncan set of course i would for the right deal. talks didn't occur, they're working on other issues than getting out of the old merger but from what i understand there was some communication and a phone call we weeks ago and that

was full on for 28 weeks. the reason we had a bead on this is i was tracking down or trying to track down a talk that he was going to do something transformational and he was looking to do something else. those things are out there and for some reason a lot of forces were out of pocket. a lot of these forces were working on the deal and couldn't talk to me. we were able to get that night just because sometimes reporting is lucky. someone picks up the phone and your able to get it. i called and i call a lot. i was making a lot of calls and i am here late, until 7:00 and in business journalism, 7:00 in the early. stuff goes down "after the bell" significantly and we got the real story. the way this developed, the first headline out of the wall street journal is there was a merger. what we were able to do was confirmed there was a beatles but more than that that this was

a transformational dealing finance. the ice, a 12-year-old institution, a computer network that buys and sells stock, 12 years old, buying the new york stock exchange for $30 a share, buying the 200-year-old icon -- liz: what do the floor traders, under their web site, do they like this or feel better about it? he was clear with you that the floor traders would stay. charlie: the floor traders didn't do so much change particularly over the last five years that this is not phasing them and i think they know, there is a place in their business model and the place is essentially where it is now. i don't think you will see more attrition, there's a certain amount of business done on the floor, and either structure nor duncan neiderauer are devotes phase of human marketmaking, they are electronic guys, duncan's experience, an entrepreneur that created this,

utility second who created an amazing story and 12 years created a company worth $10 billion, pretty amazing. they are smart. they know there's a business model of this new entity and the business model involves humans. cheryl: very impressive. charlie: why was stocks going down? this is why duncan had to sell. liz: the needed the volume. charlie: they match buyers and sellers of stocks, the equity business has been pouring off and volume is going down significantly since 2008. liz: we show the 2012 wrap up in the featured prominently. your hand never changed the mine did. charlie: short. liz: it is kind of there. charlie: i spray it on. liz: one of our early advertisements. charlie: take money from anybody. liz: thank you very much. closing bell ringing in 27 minutes. could be one of those very

special years where the bulls run wild, but we have someone who is going to tell you in which direction. barry bannister is managing director of cycle nicholas calling for big gains on the s&p 500 in 2013. find out how and where you should put your money to work coming up in a fox business exclusive. fox means business.

>> i am adam shapiro, on wall street continues with concern over the fiscal cliff, taking a toll on markets. and one hundred five points was

the fiscal cliff is not the only pressing issue, there's concern, and a farm bill by the end of the year billions of dollars in agriculture programs hang in the mix including one in which the government sets a minimum price for milk to cover production costs for dairy farmers. the securities and exchange commission charged four industry professionals with conducting a fraudulent penny-stock scene better and then $17 million in the sec alleges danny garber, michael mann, kenneth yellen and jordan feinstein misrepresented their intentions and dealings with penny-stock companies. those who live in new york and new jersey. we continue count down with the woman who is a young child is rumored to have said if you look good we look good. liz claman. liz: one of the first vidal sassoons -- that is right. he was a real entrepreneur.

online travel socks underperforming ahead of the holidays. what does that mean? nicole: let's take a look. first i can show you orbits, here is the stock, see how it is fairing, down 2-1/4% and online travel stocks underperforming, expedia announced 61% of popular german travel company and and hotel bookings, a cycle, so priceline, trip adviser, orbits, all to the downside and we should note that some of these names particularly price line received 83% of close booking from international markets so we certainly see the competition is tough in these travel online sites. i would love to be travelling right now somewhere hot with a palm tree. anywhere. liz: the drinks would be four umbrellas. thank you. fiscal cliff, fiscal clef -- i

made that up. all we seem to here as we approach christmas and it is holding the market hostage. will congress get its act together? the news we just gave you was john boehner has left d.c. for his district this afternoon. where should you put your money to work in 2013? barry bannister is managing director of stifle nicklaus, he is a bull with dennis and the target of 1600, great to see you. why are you so bullish? tell me what is at the heart of this. >> i agree with you the fiscal cliff has been a burden. we all expect an extension, a messy compromise. we know deficits hurt earnings and as we look to the political solution which has been driving the economy we expect a pickup in capital spending next year as well as construction and other measures. liz: if there's a feeling, an impression that people don't know what is going to happen on so many levels, what would

generate the rocket fuel to push that pickup? >> we all know the political process is about evenly divided and created great deal of stress in the market. some resolution of that stress would enable the equity risk premium we are all familiar with, the earnings yield to the s&p-the ten year yield to close. will close one way or the other. we think it would be higher p-e ratio mentored with low inflation and slightly higher 10 year deal to indicate growth. liz: the spread is 600 basis points. let's talk about the expansion pn 2013.. if you are looking at the market right now which has a multiple of 14 times earnings do things get more expensive and would you buy the more expensive price? >> the biggest turning sectors of the s and p such as financial, energy, material, capture, technology,

industrials, have room to increase on the p e ratio. they need the economic picture to improve and for that we need political uncertainty to be lifted and i agree with you it has been a blanket on the market. liz: it has been cheap and people will question and say why would i go in when i could have -- people have traditionally missed out on this and that is what i want you to address. our investor viewers. advises them. where are the sectors, the area as you feel will participate in what you're calling for? that it decent move on the s&p 500. >> the fear trade and defensive trade which is utilities, staples, health care, discretionary, those have run up and i wouldn't chase them here. i feel like a relief leverage is what you want and that relief rally would probably come from financial energy material tax and industrial. liz: financials of done beautifully this year. you don't think that is an overdone trade? >> no.

they're coming back from the debt. they have been our favorite screwball year. we would expect that to continue and broaden into next year with names like black rock. liz: black rock, let me just finish here with a question that a lot of people are wondering about. is that in essence, should we just believe things will happen appropriately in d.c. or let's not ignore europe. there are still had lines that could come, that ariane hurt our investments, nothing that a company on might own has anything to do with that. >> we were at 1119 with the s&p downgraded the united states on the s&p 500, 1119 and we are up 300 points and s&p earnings estimates are down $12 or $13. the market will always climb a wall of worry and we have been bullish expecting at 3 rating of equities. if you have low inflation and cash flows in the future worth a

lot more so there's room to expand at 2% inflation, we have said all along the greatest risk was deflationary and avoidance of deflationary would lift these trades i am talking about. liz: good to see. going for 1600 next year on the s&p, see you next time and see if that comes through. working hard with the phones ringing, closing bell in 16 minutes. if everyone is wrapped up in that fiscal clipped drama is it for perfect time for you to invest abroad? oppenheimer international growth fund upward of 22% year to date. you have the guy running it. robert dump fee.

liz: despite the fiscal cliff induced sell-off, put them on the screen, 52 week highs, look at the big winners, pinnacle entertainment and an aerostar casinos, mohawk industries, a big player up 1-1/4%, worldwide moving higher by 2.5%, marriott hitting an all-time high right now for marriott vacations. the markets are slipping no doubt about it as we inch closer to the fiscal cliff, my next guest says he is not looking at what is going on, so many opportunities to invest abroad. what would be point? joining me on a fox business

exclusive, oppenheimer vp and portfolio manager of the international growth fund and year to date, 42% beating the markets which have done well. but you're doing it by not even looking here, investing in foreign companies. what is going on that is better than here? >> several factors. the fiscal cliff is part of that wall of worry and affects the equity risk premium. definitely seeing a lot of growth opportunities abroad. these opportunities don't necessarily come from emerging-market. these could be companies that domicileds in very slow growth areas like western europe that have greater exposure to parts of the world and part of the economy that is a growing. liz: your criteria doesn't necessarily scare you from countries that might be in recession or close to us like france or germany but as long as they do business in areas where

people are spending money. >> that is a point that is often missed by investors. i have been understandably scared, moving into fixed-income but missing a lot of good return. liz: look at this chart, you will be scared, he has not been scared, talk about the ones you really have in here and you have names like heineken, experience, s&p, a lot here, carnival cruise based in part on u.k. and considered a foreign name. how do you pick a stock in which to invest? you are careful when you do this. >> what we are looking to do is to find long-term secular growth opportunities, the ones that are not so macroeconomics we've driven. we sort of like to call ourselves microeconomists and there are still pockets of

growth. data is a great example, the company mentioned is part of the growth in the management of data scores. liz: you like the data and the clout and the u.s. company doing beautifully, telecom, luxury, what names in the luxury, that is my exact criteria? >> you and i could start a company that made high-quality handbags, but we would never replicate what goes into these brand names. i am thinking brands that have that's -- things that are irreplaceable and impossible to replicate. liz: michael corps is taking the long, slightly lower when it comes to luxury the price points are expensive. it can be done. >> it can be done and there's lots of room for many players,

good brand equity, all across that luxury section and 8 huge number of people involved not only moving from subsistence to discretionary doubles of income -- liz: china. >> they want to demonstrate they accomplished that and luxury names are the perfect way for a lot of consumers to do that. liz: he is unafraid and has been for the past several years and done very well. good to see you. have a good holiday. robert some fee of oppenheimer international growth fund portfolio manager and we are seven minutes from the closing bell, santa claus, i wish i could say rally but not today. force shares of this company, hedge fund manager plays the grinch. we will tell you what stocks coming. i always wait until the last minute. can i still ship a gift in time r christmas? yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress.

ship fedex express by december 22nd for christmas delivery.

he les risk. but whether he's climbing everest, scuba diving the great barrier reef with sharks, or jumping into the marke he goes with people he trusts, which is why he trades with a company that doesn't nickel and dime him with hidden fees. so he can worry about other things, like what the market is doing and being ready, o matter what happens, which isn't rocket science. it's just common sense, from td ameritre.

liz: in the collective lots of red on the screen but look at this one stock in particular down 35% over just the past week alone and it is herbal life under attack by bill packman of pershing square capital, the hedge fund manager who has made a lot of bats and done very well and has taken the bet against this one and in just the last 20 minutes bill has launched a brand new web site to state his feelings and concerns, basically call this team, a pyramid scheme, the company has denied it and trying to fight back but wants to brand new web site. let me give you the name facts about herbal life.com and in essence he is saying this is his defense of the short position. he took a large short position,

falling 19% right now down 30% for the week, got to be a horrible feeling if you are a shareholder of this company or member of the company but it is under attack right now. pershing square launching fact about herbalwife.com in the last 20 minutes of the stock getting smacked down, so is the entire market, at one point dow jones industrials down 189 points as we wrap up "countdown to the closing bell" for the year i want to thank you all, ashley webster in for me but i'm getting ready for "after the bell" with david asman. dave: the attacks on herbal life like the attacks on overstock, you will hear from both sides. as we look at a down market, important to remember last night when news of the deal collapsed in a bell with the futures were down 3%. this is bad but it is down 1%, a lot less than it was down last